ToolsCorp Corporation SWOT analysis

Document Type:Essay

Subject Area:Management

Document 1

This report is presented to ToolCorp’s Strategic Officers Steering Committee (SOS-C) with the intention of recommending the development of a business plan, for strategic initiatives, in order to break into the global marketplace. This report will include a comprehensive SWOT Analysis of ToolCorp’s business environment, and an outline of a business plan. The analysis will look into the strengths, opportunities, weaknesses, and threats of the ToolsCorp Corporation business environment. The purpose of this report is to obtain permission from the Strategic Officers Steering Committee, to go forward with developing and implementing a full-blown business plan, in order for ToolsCorp Corporation to strategically initiate its break into the global marketplace. The report will also contain a preliminary market analysis and a recommendation for the key operating principles to be applied.

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This, therefore, makes it difficult for the company to experience a huge loss. The strategic position of the company’s manufacturing company is also a strength. Located in Memphis, Tennessee, the company is strategically positioned on the largest city along the Mississippi River, which is a manufacturing hub and has the well-developed infrastructure, including a well-established transport system. The Bluff City also has the Memphis International Airport, which is the second busiest cargo airport in the world. The city is also served by extensive road and rail networks, which makes the movement of goods fast and efficient. Weaknesses There are some internal factors that can hinder the development of a company. For the case of ToolsCorp Corporation, it has since inception been transacting in the United States and Canada only, thus it currently does not serve any other foreign market.

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For this reason, the company will need to steep the learning curve, in order to be able to cater to other clients from other countries. The company will have to do some research on foreign companies in terms of understanding the laws and regulations, logistics and culture so as to avoid any barriers. Another weakness of the company is that some of the products by ToolsCorp are seasonal in nature. Opportunities ToolsCorp Corporation has the opportunity to venture into markets outside North America, to markets such as South America, Asia, Europe, Australia, and Africa. While some of these markets such as Europe might be well mature, research indicates that there is a shortage of high-quality, energy-efficient products. This presents an opportunity for ToolsCorp Corporation for supplying high-quality products to the market.

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The other markets are also ripe for the demand of ToolsCorp products. Research conducted by the R & D Unit show that some of these new markets have a temperate weather condition, which might be a good external factor and an opportunity for the company. There are countries that have placed higher regulatory entry barriers to multinational companies in order to allow for the growth of local companies and their industries. Some of the new countries might be politically unstable, which could lead to huge losses. Some of these new countries can be having currencies that are volatile, which can pose a problem in establishing a pricing model for products in those markets. The volatile fluctuations in the currency exchange rates can be a boon or a bane to the company.

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